CleanSlate Announces $25M Funding

CleanSlate, a national leader in outpatient pharmacological treatment for the chronic disease of addiction – primarily opioid and alcohol addiction – has secured $25 million in a recent financing. The round was led by HealthQuest Capital, which joins existing controlling investor Granite Growth Health Partners. The funding represents another significant milestone for CleanSlate as it continues to accelerate its growth – 45 centers currently operate across eight states, with another 22 centers slated to open this year, and more than 30,000 patients treated with evidence-based medicine.

CleanSlate has been a tireless advocate for patients suffering from addiction and stigma, since it was founded in 2009 in response to the country's growing opioid epidemic. CleanSlate's addiction treatment program is grounded in the latest science and best practices, and follows guidelines set by the American Society of Addiction Medicine. Its physician-led centers provide individualized, evidence-based treatment for substance abuse, including pharmacological treatment supported by ancillary counseling. CleanSlate believes a collective fight is needed against the chronic disease of addiction and strives to be the partner of choice for healthcare providers, health insurers, government entities and communities.

"We are grateful to Granite Growth and HealthQuest, whose partnership will help us continue to fulfill our mission and expand services to patients and communities desperately needing evidence-based care," said Gregory Marotta, President and CEO of CleanSlate Centers. "In addition to new centers, we envision working with hospitals, health insurers, local government and community organizations to develop partnerships and creative ways to expand access and deliver treatment, beyond the traditional brick and mortar center."

"We pride ourselves on working with companies that are transforming healthcare, and we share CleanSlate's vision of making communities across the nation healthier," said Dr. Garheng Kong, Founder and Managing Partner at HealthQuest Capital. "CleanSlate has a proven model of success and strong leadership, and we recognize that the need for high quality, outpatient addiction medical treatment and behavioral health services are only growing."

CleanSlate has partnered with Granite Growth Health Partners, a healthcare-focused growth equity fund that was founded in October 2017. Granite Growth also invested in the recent round of financing. Diane Daych, co-founder and a managing partner of Granite Growth, began investing in CleanSlate while leading the health services growth equity investing team at a healthcare focused venture firm, prior to founding Granite Growth.

"CleanSlate is a dynamic, high-growth health services company, and we are proud to continue our partnership to help advance clinical and operational excellence," said Daych. "Despite the scale of the epidemic, there is still pervasive stigma about this disease that is hindering adequate access and funding for efficacious addiction treatment that the nation desperately needs."

CleanSlate currently operates in Arizona, Connecticut, Florida, Indiana, Massachusetts, Pennsylvania, Texas, Wisconsin and Washington, D.C. – with plans to open in Ohio, Kentucky and New Jersey.

About CleanSlate Centers

A pioneer and leader in outpatient addiction medicine, CleanSlate Centers is a national medical group which provides treatment for the chronic disease of addiction, primarily opioid and alcohol use disorders. Founded in 2009 in response to the growing opioid epidemic facing the country, the company operates a growing network of physician-led, office-based addiction treatment centers, where patients with opioid or alcohol addiction can receive medication-assisted treatment and related therapies using the highest quality, evidence-based practices. CleanSlate currently has a national footprint of 45 centers in eight states and the District of Columbia, with more centers opening every month to meet the demand for the company's services. For more information, please visit www.cleanslatecenters.com.

About Granite Growth Health Partners

Granite Growth Health Partners is a growth equity firm that exclusively invests in and partners with health services companies, and has a successful track record of developing market leaders that strengthen the delivery of care. The firm invests in and provides strategic support to emerging growth health services companies with proven business models. Granite Growth makes investments in the $10 million to $50 million range to help companies reach their full potential, achieve clinical and operational excellence and create true value. Learn more at www.granitegrowthhealthpartners.com.

About HealthQuest Capital

HealthQuest Capital makes early growth investments in innovative commercial-stage healthcare companies that are improving both patient outcomes and healthcare economics. Investments focus on medical products, diagnostics, healthcare IT and technology-enabled healthcare services. The HealthQuest investing team includes deep operational, clinical and scientific expertise and worldwide relationships throughout the healthcare industry that can be leveraged to add value to its portfolio companies. HealthQuest Capital is headquartered in Belmont, CA with west coast and east coast offices. Learn more at www.healthquestcapital.com.